The reply to an application filed under the Right to Information (RTI) Act has revealed that a five-star hotel has been recognized by Nagpur Municipal Corporation (NMC) as a residential property instead of a commercial one and is charging it the property tax accordingly.

The reply to the application, provided by the Dhantoli zone office of NMC, states that the five-star hotel Radisson Blu, spread over an area of 1.28 lakh square ft, has been issued a demand note of Rs. 1.33 lakh based on the calculation of property tax assuming it to be a residential property. Standing committee chairman also admitted the goof up and said that directives have already been issued to NMC's tax assessor in this regard. A senior NMC tax department official has said that fresh demand note of around Rs. 6 lakh will be issued to the hotel and assured that the hotel will have to pay the extended tax since the time it was opened for business.

The applicant has also approached the municipal commissioner seeking strict action against the erring officials.